Monday, 28 November 2016

Is Singapore’s Infamous Penny Stock Saga Coming To An End?

Three years back in October 2013, financial specialists in Singapore's securities exchange were spooked by the fall of three penny stocks, to be specific, Blumont Group Ltd (SGX: A33), LionGold Corp Ltd (SGX: A78), and Asia sons Capital (now renamed as Attilan Group Ltd (SGX: 5ET)).

The trio saw their share costs take off powerfully before falling through the rooftop in only two or three days, wiping out billions of dollars in market capitalization simultaneously.

After the fall of the three penny stocks, controllers in Singapore began examinations in what could be one of the biggest extortion cases ever in here. In the wake of three monotonous years, the principle suspects have been charged.

John Soh Chee Wen, a Malaysian specialist, is charged to be the brains behind the adventure. He has been slapped with 181 charges identified with the case. His partners, Quah Su Ling and Goh Hin Calm, were accused of 178 and six checks of wrong-doing, individually.

In their examination, the controllers revealed a mind boggling plan executed by the three suspects including several exchanging accounts that were utilized to make a false market for the three stocks, pump up their share costs, and control the supply of their shares in the market.

Strikingly, before John Soh turned into a notorious figure in Singapore, he was at that point an agent in Malaysia who had run-ins with the powers there. Soh was included with various mergers and takeovers in Malaysia amid the 1990's. He was additionally required with numerous Malaysia-recorded organizations, for example, Promet and Plantation and Developments amid that period. In 1999, a capture warrant for Soh was issued in Malaysia because of an examination identified with one of the nation's financier firms, Omega Securities.

Soh was at long last sentenced in 2007 and he confessed to helping previous TA Securities head, Tiah Thee Kian, to give false proclamations to Malaysia's stock trade with respect to the shares of Omega Securities in 1997. Soh was fined RM6 million for his part.

Is this the end of the notorious penny stock adventure? Shockingly, advertise controllers resemble weeds. Controllers can attempt their best to cull them out one by one, yet they will even now appear occasionally. The main route for us as financial specialists to ensure ourselves is to acquire learning about contributing and not be effectively impacted by theorists working among us.

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